Want to start small business? Avoid these mistakes

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FIHL | 04 Sep, 2012
For many people, starting small business of their own is like a dream come true. But there are many entrepreneurs who see their dreams fall apart due to adequate knowledge as how to run a business successfully. There are some common pitfalls that if small and medium enterprise (SME) business owners are aware of, can increase their chances of survival.

Here are some common mistakes that the owner of a SME business must avoid at any cost:

Inadequate Market Research

For any budding entrepreneur it is important to do carefully and thorough market research. This will help them to find whether there is adequate demand in the market for starting new business in any SME segment. Also you get to know about the expectation of your targeted customers and business pattern of your immediate competitors. Undertaking market research may appear time consuming but the effort will pay off.

Ignoring Paper Work

For any small business to be successful, it is must for the entrepreneur to keep proper record of how his or her business is doing. Paperwork is too easy to ignore but can never be put off for too long. It is important to keep record of sales, purchases and other expenditure to have knowledge about whether your business has turned out to be profitable or not.

Insufficient Finance

When starting new business, an entrepreneur generally have an idea about how much finance will be required. But after initial set-up, you also need to have sufficient capital to fund day-to-day requirements. In business nothing is certain as you never know when you might need to meet some immediate expenses. If you wish to survive make sure you set aside enough cash to meet all your needs for the first few months.

Ineffective Marketing Plan

Remember you need to tell your target audience about your business venture as until and unless you do so they will not be aware of your business. Here marketing plays a very important role in the success of any business. So, it is must for you to follow a strong marketing plan.

Ignorance towards Changes in the Market

As a SME business owner it is very important for you to adapt with the changing trends of the market. Always keep your eyes and ears open to what your competitors are doing and what your customers want. Don't keep your business lack behind the competition.

Forgetting the Customers

It is your customers that decide the fate of your business. In fact the real boss in any business is not the owner but the customers. Never do anything to annoy your customers and in fact you should make any business plan focusing on the needs and requirements of your targeted customers.

Underestimating the importance of sales

For small-business owners starting out, most of the attention should go to sales and revenues. If the sales grow in the right direction, expenses will take care of themselves. And no matter how small, every company needs dedicated sales persons to make sure business is constantly rolling in the door. So sell your product or service with full confidence.

Avoid these common mistakes when starting small business of your own to enjoy good profit on your investment. (Source: Articlesbase)

* Author - Fanchise India (FIHL)
* FIHL is your best source for information about new franchises and small business ideas in the market. Here you can get all the tips of starting new business in different segments and anything required for a good entrepreneur business opportunity.
* The views expressed by the author in this article are his/ her own and do not necessarily reflect the views of SME Times.